In a historic crackdown on financial crime, Nepal's Department of Money Laundering Investigation (DoMLI) has filed its 'largest-ever' lawsuit at the Special Court against 39 high-profile individuals. The case spans securities fraud, insurance scams, and banking offenses, involving an unprecedented claim amount of Rs 106.02 billion.
Accusing the defendants of using political backing to run sophisticated fraud networks, the state has demanded an additional 200% penalty on top of the claimed amount.
The charge-sheet names prominent business moguls, institutional heads, and regulators, including a former chairperson of the Nepal Insurance Authority and executives from major institutions like Himalayan Re-Insurance Ltd and Himalayan Securities Banker Ltd Controversial businessman Deepak Bhatt, the alleged mastermind currently doing time in custody, faces the highest individual claim of Rs 26.63 billion for stock manipulation using Jagdamba Group funds.
Other key defendants include top promoters of the Shanker Group. Vice Chairman Sulabh Agrawal faces a claim of Rs 25.59 billion for laundering money through a fraudulent property lawsuit to transfer restricted shares to his son.
His wife, son, and fellow promoter Sahil Agrawal (Rs 6.04 billion) are also charged. Additionally, businessman Rishi Raj Mor faces a Rs 3.78 billion claim for manipulating stock prices, while Sandeep Chachan Agrawal and Bhrikuti Stock Broking face a combined Rs 14.58 billion claim. High-profile industrialist Shekhar Golchha and several associates collectively face a Rs 2.73 billion claim.
The lawsuit highlights systemic corporate and regulatory collusion, slapping former regulatory chairpersons Sharad Ojha and Madan Dahal with a combined Rs 3.50 billion claim. Various other institutional heads, including CEOs of several micro-insurance companies, face claims ranging from Rs 42 million to over Rs 7 billion.
This landmark case comes at a critical time as Nepal faces international pressure from the Financial Action Task Force (FATF) to strengthen its anti-money laundering frameworks.
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